11 Difference Between Charge Card And Credit Card
1. Charge Card:
You have to pay off the full amount you spend on the card each month.
2. Credit Card:
You can pay off your purchases over time. You will be charged interest.
3. Charge card does not have preset spending limit. Credit card does have.
4. You can get in to debt with charge card. You have to pay off every month. Other benefit is there is no interest on charge card.
5. Charge card does not affect credit score criteria like credit utilization. So you can use charge card and you will not worry about credit utilization.
6. Charge card generally does have annual fee. You can find many credit cards without annual fee.
7. Charge card does have late fees. You can avoid late fee in credit card by making minimum payment.
8. There are very less charge card issuer. You will have more choice when it comes to credit card.
9. American express is the only issuer of charge card. American express cards are less accepted abroad than visa or mastercard. So it is not suitable for international travel.
10. You will need good or excellent credit for charge card. You can find many credit cards for average credit.
11. Charge cards offer more rewards and perks like roadside assistance, extended warranty on certain purchases, car rental insurance, purchase protection, and travel accident insurance.